Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

A Level Business Pearson > 3.1.2 Theories of corporate strategy > Flashcards

3.1.2 Theories of corporate strategy Flashcards

1
Q

define corporate strategy

A

the plans and policies developed to meet a company’s objectives
-concerned with the range of activities the business needs to undertake in order to achieve its goals

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

define distinctive capability

A

form of competitive advantage that is sustainable because it can’t be easily replicated by a competitor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

define portfolio analysis

A

a method of categorising all the products and services of a firm to decide where each fits within the strategic plans

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

what are the two developments of corporate strategy?

A

Ansoffs Matrix
Porters Strategic Matrix

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

what is the corporate strategy?

A

the long-term plan to achieve the aims of the entire business

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

what will a successful strategy do?

A

give the firm an advantage in the competitive market place and fulfil stakeholders expectations

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

define ansoffs matrix

A

A marketing planning model that helps a business determine its product and market strategy

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

what does the ansoff matrix consist of?

A
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

define market penetration

A

a growth strategy where a business aims to sell existing products into existing markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

what is the aim when choosing market penetration?

A

increase market share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

what do we do in market penetration?

A

by selling more existing products to the same target customers
-get existing customers to buy more
-widen the range of existing products
-increase sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

evaluate market penetration

A

focuses on markets and products it knows well
can exploit insights on what customers want
unlikely to need significant new market research
will the strategy allow the business to achieve its growth objectives?

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

define product development

A

a growth strategy where a business aims to introduce new products into existing markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

what comes along with product development?

A

Research and development costs of the new products

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

evaluate product development

A

plays to the strengths of an established business
strong emphasis on effective market research - insight into customer needs and successful innovation
a great way of exploiting the existing customer base
being first to market is important

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

define market development

A

a growth strategy where the business seeks to sell its existing products into new markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

what approaches are taken to market development?

A

-new geographical markets
-new distribution channels
-different pricing policies to attract new customers in different segments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

evaluate market development

A

a logical strategy where existing markets are saturated or in decline
riskier than product development - particularly expansion into international markets
existing products may not suite new markets as it depends on customer needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

define diversification

A

the growth strategy where a business markets new products in new markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

evaulate diversification

A

risky strategy as there is no direct experience of the product or market, few economies of scale, but if successful risk is spread
-approach through innovation and R&D by developing new solutions, acquire an existing business in the market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

give advantages of the ansoff matrix

A

simple and easy to understand
allows a business to consider multiple marketing strategies to improve the business
helps analyse the different risks and levels of investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

give some disadvantages of ansoffs matrix

A

competition and actions are ignored
ignores external influences -> use with a SWOT/PESTLE analysis
lack of cost benefit analysis
difficult to predict the impact the strategies will have

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

what is the challenge facing marketing strategy?

A

to find a way of achieving a sustainable competitive advantage over the other competing products and firms in a market

24
Q

what does porters approach cover?

A

-two overall bus strategies that could be folllowed to gain competitive advantage
-differentiation and low cost being effective strats to gain a comp ad

25
Q

define competitive advantage

A

An advantage over competitors gained by offering consumers greater value, either by lower prices or adding value

26
Q

explain the porters generic strats table

A

cost differentiation
Broad scope COST LEADERSHIP DIFFERENTIATION
Narrow scope COST FOCUS DIFF. FOCUS

27
Q

What is meant by low cost?

A

the objective to become the lowest cost operator
-involving production on a large scale -> exploit EoS`

28
Q

why is low cost a source of competitive advantage?

A

if prices are similar, low cost will enjoy highest profits & offer lowest prices -> gain market share
suitable for standard products, markets w little product diff

29
Q

what are some features of low cost operators?

A

high levels of productivity and efficiency
high capacity utilisation
use bargaining power to negoitiate lowest prices from suppliers
lean production methods

30
Q

examples of low cost operators?

A

ryanair
poundland
aldi

31
Q

what is meant by differentiation?

A

aim to offer a product that is distinctively diff from the comp w the customer valuing that differentiation

32
Q

how can a business achieve differentiation?

A

superior product quality
branding
wide distribution channels
sustained promotion

33
Q

give some examples of successful diff strats

A

apple
costa
dyson

34
Q

what is stuck in the middle?

A

dangerous area as not either
facing competitors with low cost and highly differentiated products
-> suffer competitive disadvantage

35
Q

give some examples of businesses stuck in the middle?

A

WHSmiths
Morrisons
sony

36
Q

what is a hyrbid strategy?

A

mix of low cost and diff
ex is IKEA
-low prices through cost leadership
differentiatrs through unique designs and targets young global middle class

37
Q

give some advantages of the porters generic strats

A

simple to pick one
easy to identify where a business stands

38
Q

give some disadvantages of porters generic strats

A

not relevant in dynamic markets
oversimplifies market structure
not useful in crisis situation

39
Q

how can CA be achieved throufh distinctive capabilities?

A

Architecture - contracts & relationships within the organisation
Reputation - links w brand image, around quality, reliability, service and prestige
Innovation - sustainable CA is when a business is able to innovate by developing a new product or process

40
Q

define the boston matrix

A

is an analysis tool which enables a business to identify where they are in terms of market growtrh and market share

41
Q

what are the four categories of the boston matrix?

A

Stars
Question marks
Dogs
Cash Cows `

42
Q

what does the boston matrix look like?

A

Low relative ms HIGH RMS
High Market growth ? stars
Low Market g DOGS cash cows

43
Q

what are the two exes used for boston matrix?

A

Relative market share - share in relation to competitors, measures products strength in the market
Market growth - measure of market attractiveness

44
Q

what are features of stars?

A

high market growth
high marketing spend
positive cash flow

45
Q

what are some strategies for stars?

A

invest to sustain growth
maintain or build market share
create barriers to entry

46
Q

what are features of ?

A

low share of a fast growing market
neg cash flow
future is uncertain

47
Q

give some strats for ?

A

invest to increase MS
try to build CA
Build selectively and invest in the most likely stars

48
Q

what are some features of cash cows?

A

high share of a low growth market
likely to be in mature stage of PLC
Little potential for growth
large pos cash flow

49
Q

strategies for cash cows

A

reduce investments -> maximise cf and profits
use profit to invest in? and stars
defend MS

50
Q

what are features of dogs?

A

products which have failed or decline phase of PLC
low share of a low growth market
no real potential
negative cash dlow

51
Q

what is the strategy for dogs?

A

remove of market
as uses up management time and reosurces

52
Q

what are some + of the boston matrix?

A

useful tool for analysing product portfolio decisions
can help a business decide to invest or remove a product

53
Q

what are some - of the boston matrix?

A

only a snapshot of current position
relative MS and MG are not the only dimensions important to a business

54
Q

what is a strategy?

A

long term decisions to achieve objs based on a set of principles, set by the ceo and board of directors
-proactive decision making
forward thinking and future planning

55
Q

what is a tactic?

A

short term response to an opp or threat in the market
managerial or supervisor level
supports the corp strategy
reactive to compp
made in isolation of the bigger picture

56
Q

ex of strategies are:

A

HR hiring new staff to improve productivity
Physical - moving a factory to another location -> cost cutting
finance - issueing shares to raise capital

57
Q

exs of tactics?

A

HR- hire a new network manager as old one quit
Physical - moving a factory layout to accomodate a new product being manufactured
Finance- Agreeing on an overdraft with the bank to cover a shortfall in a cash flow forecast

A Level Business Pearson (40 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions